There are signs that the housing market is cooling. The inventory of unsold homes rose 3.8% in June to the highest level since July, 1997, while the national median home price posted its slowest year-over-year price increase since May, 1995, according to the National Association of Realtors. Because of uncertainty in the housing market, some investors are holding back investing, including second-home buyers. However, there are deals out there and a savvy investor and/or a second home buyer has to find a savvy Real Estate Agent.

WHAT TO DO
If you are considering purchasing a second home and want to find a locale that is likely to hold its value in a cooling market, research locations with good investment potential -- note differences between asking and selling prices, read real-estate blogs and articles and take advantage of online pricing tools. Consider "undervalued" markets -- places generally free of big spikes or declines in home prices and be wary of overvalued markets, which are at risk of price declines. with steady housing demand and lower-priced beach towns, which are likely to remain hot with buyers.

HOME VALUE
The top 10 most undervalued U.S. housing markets, based on 2006 first-quarter median prices, median income, population and historic values.